ABSTRACT
The role of economic statecraft in the changing context of East-West relations will serve as an illustration of the new policies needed to promote national security in the 1990s. Defense expenditures are often discussed in terms of the levels "required" in order to "achieve" national security. Sacrifices of economic welfare and individual liberty in order to acquire an additional increment of national security will become immoral, inexpedient, or both. National security has both objective and subjective dimensions. One of the most important steps in formulating national security policy is making the decision about the range of values to be protected. The important thing in formulating national security policy is to be aware of the wide variety of means available. The utility of a national security policy is a function not only of its effectiveness in protecting core values but also of its cost.
